{"id":31624,"date":"2025-08-01T19:24:44","date_gmt":"2025-08-02T02:24:44","guid":{"rendered":"https:\/\/essential.construction\/news\/tariffs-sap-fluors-backlog-trigger-project-cancellations\/"},"modified":"2025-08-01T19:24:44","modified_gmt":"2025-08-02T02:24:44","slug":"tariffs-sap-fluors-backlog-trigger-project-cancellations","status":"publish","type":"post","link":"https:\/\/essential.construction\/news\/tariffs-sap-fluors-backlog-trigger-project-cancellations\/","title":{"rendered":"Tariffs sap Fluor\u2019s backlog, trigger project cancellations"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"text-to-speech\">\n    <button class=\"text-to-speech__button button\"><br \/>\n        <img decoding=\"async\" class=\"text-to-speech__button__icon\" src=\"https:\/\/www.constructiondive.com\/static\/img\/play.svg?500116090725\" alt=\"-\"><br \/>\n        Listen to the article<br \/>\n        <span class=\"text-to-speech__button__audio-length\">4 min<\/span><br \/>\n    <\/button><\/p>\n<div class=\"text-to-speech__controls\">\n        <audio controls=\"\" class=\"js-text-to-speech\" preload=\"none\"><source src=\"https:\/\/res.cloudinary.com\/dmgi9movl\/video\/upload\/q_1\/v1754077913\/news\/text_to_speech\/tariffs-fluor-backlog-project-cancellations-second-quarter-earnings_kfw6sx.wav\" type=\"audio\/mp3\"><\/source><\/audio><\/p>\n<div class=\"text-to-speech__controls__text\">\n            This audio is auto-generated. Please let us know if you have <a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/contact\/\" target=\"_blank\">feedback<\/a>.\n        <\/div>\n<\/p><\/div>\n<\/div>\n<p><span><span><span><span><span><span>Fluor reported three months ago that <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/fluor-tariffs-q1-2025-earnings\/747220\/\" target=\"_blank\"><span><span><span><span><span><span><span>clients were forging ahead<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> with projects despite trade headwinds. Now, many are hitting pause, the company said on its Friday <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/fluorenterprisesinc2023rbcr.q4web.com\/news\/news-details\/2025\/Fluor-Reports-Second-Quarter-2025-Results\/default.aspx\" target=\"_blank\"><span><span><span><span><span><span><span>second quarter earnings call<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cOver the past couple of months, we\u2019ve seen more clients continue to take a wait-and-see approach due to a variety of reasons, including ongoing trade policy discussions and developments, cost escalation and <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/interest-rate-cut-july-federal-reserve-construction\/756328\/\" target=\"_blank\"><span><span><span><span><span><span><span>interest rates<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>,\u201d said Fluor CEO Jim Breuer during the call. \u201cIn a few cases, we\u2019ve seen project cancellations or extended deferments.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In Friday morning trading, the company\u2019s stock cratered more than 27% following the news.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Meanwhile, a trio of older infrastructure jobs continues to hamstring Fluor\u2019s earnings, said Breuer.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>In its Urban Solutions segment, which focuses on infrastructure, advanced facilities and life sciences, second quarter profits nosedived from $105 million in the prior year period to $29 million. The hit came largely from cost overruns on the <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/gordie-howe-bridge-tops-out\/721451\/\" target=\"_blank\"><span><span><span><span><span><span><span>Gordie Howe International Bridge<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> between Windsor, Ontario, and Detroit, and the LBJ 635 expansion and I-35 Phase 2, both in Dallas.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>All three jobs are now more than halfway complete. Breuer said the Gordie Howe project is now 97% finished, LBJ 635 is 78% done and I-35 Phase 2 is 58% built. He added the company will be taking legal action against certain subcontractors for poor performance on the jobs.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWhether it\u2019s design errors by third parties or material escalation or labor challenges, we are addressing very aggressively these issues, and have taken actions both on the execution front and on the recovery from third parties,\u201d said Breuer. \u201cIt is true that unfortunately, we are still experiencing some pain from projects.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<h3 class=\"standard-heading\"><span><span><span><strong><span><span>Hits to energy<\/span><\/span><\/strong><\/span><\/span><\/span><\/h3>\n<p><span><span><span><span><span><span>Work tied to energy construction also slowed.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>The firm\u2019s Energy Solutions segment profit dropped about 80% to $15 million from $75 million a year ago, according to the earnings report. The company cited reduced capital expenditures in the battery and chemicals market and a $31 million arbitration ruling tied to a fabrication project by its Mexico joint venture in 2021.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cAs far as the trade policy topic, it is having a significant impact on client sentiment and their willingness to make long term decisions, investment decisions,\u201d said Breuer. \u201cWhat our clients are looking for is a little more stability and certainty around where that\u2019s going to go.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Despite those setbacks, executives on the call touted positive milestones on other jobs, including new progress on semiconductor work. Other highlights include early engineering for a rare earth project in Wyoming and two completed co-location data center projects in India. Fluor execs also pointed to nuclear energy as a key growth area.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<figure class=\"image-right inside_story\">\n<div class=\"figure_content\">\n<div><img decoding=\"async\" alt=\"headshot of Jim Breuer\" data-imagemodel=\"164194\" src=\"https:\/\/imgproxy.divecdn.com\/a0FttgtrLbZWs14NPFCCLQNzBXztT9WxYh-1RbmrvlE\/g:nowe:32:0\/c:1440:1800\/rs:fit:0:860\/Z3M6Ly9kaXZlc2l0ZS1zdG9yYWdlL2RpdmVpbWFnZS9KaW1fQnJldWVyLmpwZw==.webp\"\/><\/div>\n<\/div><figcaption class=\"inside_story_caption\">\n<p>Jim Breuer<\/p>\n<p>Courtesy of Fluor<\/p>\n<p>\u00a0<\/p>\n<\/figcaption><\/figure>\n<p><span><span><span><span><span><span>Breuer also said Fluor remains confident around demand for infrastructure and power-related work over the next several quarters, particularly as <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/www.constructiondive.com\/news\/big-beautiful-bill-construction-industry-impact\/753038\/\" target=\"_blank\"><span><span><span><span><span><span><span>federal policy incentives<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span> begin to take effect.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201cWe are at a point in the cycle of short term hesitation on our way to longer term opportunities,\u201d said Breuer. \u201cSpecifically in the U.S., once the effects of the recently enacted pro-growth policies materialize, we expect clients to accelerate domestic investment in many of our end markets, such as manufacturing, semiconductors, data centers, power, mining, metals and national security.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><strong><span><span>Q2 results<\/span><\/span><\/strong><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Fluor reported it earned $2.5 billion in the second quarter of 2025, up from $169 million in 2024, driven by $3.2 billion pre-tax mark-to-market gains on its investment in NuScale, a small modular nuclear reactor company, according to the release. Its revenue reached $4 billion in the second quarter, about a 6% drop year over year.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>Backlog fell to $28.2 billion in the second quarter, a 13% drop from $32.3 billion a year ago, according to the earnings report. New awards also dropped 43% year-over-year to $1.8 billion for the second quarter.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<p><span><span><span><span><span><span>\u201c[Results] were tough with weak orders, charges and delays all peppering the report,\u201d wrote Andrew Wittmann, senior research analyst at Baird, a Milwaukee-based financial services company, <\/span><\/span><\/span><\/span><\/span><\/span><a rel=\"nofollow noopener\" href=\"https:\/\/baird.bluematrix.com\/links2\/secure\/pdf-viewer\/176b816b-88d2-4ead-b701-9a2a06c2d60c\" target=\"_blank\"><span><span><span><span><span><span><span>in a research note<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a><span><span><span><span><span><span>. \u201cUltimately, [partial NuScale] monetization was good \u2026 results were not.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.constructiondive.com\/news\/tariffs-fluor-backlog-project-cancellations-second-quarter-earnings\/756613\/\" rel=\"nofollow noopener\" target=\"_blank\">This article was originally posted at Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Listen to the article 4 min This audio is auto-generated. Please let us know if you have feedback. Fluor &#8230; <a title=\"Tariffs sap Fluor\u2019s backlog, trigger project cancellations\" class=\"read-more\" href=\"https:\/\/essential.construction\/news\/tariffs-sap-fluors-backlog-trigger-project-cancellations\/\" aria-label=\"Read more about Tariffs sap Fluor\u2019s backlog, trigger project cancellations\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[457],"tags":[],"class_list":["post-31624","post","type-post","status-publish","format-standard","hentry","category-construction-dive","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/31624","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/comments?post=31624"}],"version-history":[{"count":0,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/posts\/31624\/revisions"}],"wp:attachment":[{"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/media?parent=31624"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/categories?post=31624"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essential.construction\/news\/wp-json\/wp\/v2\/tags?post=31624"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}